S

Severance Pay

Definition

A financial compensation given to employees upon involuntary separation such as layoffs, redundancy, or retirement.

Context & Importance

Supports employees during transition and reflects a fair, empathetic employer brand.

Use Cases

• Calculating exit settlements
• Communicating financial terms during layoffs

Related Concepts

Notice pay, final settlement, exit benefits.

TankhaPay Relevance

Automatically calculate severance based on policy and tenure. Integrate it into full & final settlements.